XRP was dropped by almost 10% over the past week, turning the feeling of trafficking and triggering a wave of activities on the sales market on its long -term market.
While the purchase of decreasing pressure, the Altcoin risks plunged below the key support formed at $ 2 in the short term.
Position of XRP term merchants for decline
The lowering tone on the XRP market is obvious in the purchase / sale of token lessee ratio, which has always displayed negative values in the past two weeks.
This indicates that sales orders dominate purchase orders on the XRP -term market. At the time of the press, this is 0.92, by cryptokant.
The Buy-Sell ratio of an asset measures the ratio between the purchase and sales volumes on its long-term market. The values greater than an indication of more than sale volume of purchase, while the values lower than a suggest that more traders in the long term sell their assets.
The sustained decline in the purchase / sale ratio of XRP takers in recent weeks indicates a sale of sales of future among term traders, many of which increase their exposure to exposed positions.
This is reflected by the long / short ratio of the token, which currently amounts to 0.94.
For the context, this metric has remained below one since May 8, stressing that traders have been positioning themselves for almost a month.
The prolonged demand for short positions suggests that the drop in XRP prices is not only a reaction to short -term volatility. It also shows a wider lower tilt increasingly pulled by the expectations of lower prices.
Will XRP hold the $ 2 support?
At the time of the press, XRP is negotiated at $ 2.13. If the down pressure is gaining momentum, the token may slide below the psychological brand at $ 2. A violation of this key support line could deepen the current correction and cause XRP trade below $ 1.99.
However, a resurgence of the new request for Altcoin could invalidate this downward perspective. If the purchase of overvoltages, the XRP token could attend a bullish correction and climb $ 2.29.
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